British Pound: USD/GBP (GBP=X) static after UK manufacturing sector slowdown
The biggest ecostat for the Pound today is likely to be the UK Manufacturing Purchasing Managers’ Index (PMI) which is forecast to soften from 54.4 to 54.2 in July. “However, if an upswing takes place or the number remains the same, Sterling might be offered some stability”. said Shayne Heffernan, CEO and Founder of Heffx.
This is a fraction below the week’s current GBP/USD exchange rate high of $1.317 and comes after a decline in the UK’s manufacturing sector activity reading.
July’s UK manufacturing PMI has dropped from 54.4 points to 54, below forecasts for a 54.2 point reading.
Any reading above 50 means the sector is growing, but this figure still represents a slowdown.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 1.33.
The projected lower bound is: 1.29.
The projected closing price is: 1.31.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 31.5644. This is not an overbought or oversold reading. The last signal was a buy 9 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 43.38. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 24 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -19. This is not a topping or bottoming area. The last signal was a buy 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.002 at 1.311. Volume was 77% below average (consolidating) and Bollinger Bands were 35% narrower than normal.
Open High Low Close Volume___
1.312 1.313 1.310 1.311 37,754
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.31 1.32 1.36
Volatility: 7 8 9
Volume: 157,090 169,435 155,298
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX GBP= is currently 3.5% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of GBP= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on GBP= and have had this outlook for the last 11 periods.